Category: short sale

The discounts that banks and lenders are taking on short sales is rising. At least that is what the latest data from the LPS Home Price Index seems to indicate.

Since April 2007, when short sale discounts averaged only 10% while bank owned foreclosures sold for 19 percent discounts, the short sale discounts have jumped to 23% while foreclosures are now selling for a 29% discount.

These numbers are nationwide averages so it will be necessary to research your local markets. However, it appears that short sales have become a more rewarding target for both investors and retail buyers. The difference in discounts can often be easily outweighed by higher repair costs on foreclosed properties who are frequently vacant for an extended time or even vandalized, while short sale properties may be found in much better condition.

Where do you find the best deals in your local market? Leave a comment below!

But over the last five years of real estate depression, short sales have become increasingly more difficult to get done.

Lenders take forever to approve short sales, and have added new contingencies almost on a weekly basis.

The contingencies are mostly designed to prevent a short sale investor from making any money.

In the banks’ mind, they are entitled to (at least) the full price that an end buyer (aka retail buyer) would pay, minus normal closing costs and commissions.

Investors who have taken on that battle have been forced into legal gray areas to edge out some profits on a few cases, while most short sale deals they try to negotiate fall apart for one reason or another.

Just last week I talked with one of the Nation’s leading short sale “educators” (aka “gurus”), and he told me first hand that one of his most successful students just sent him a copy of a check where he had made $50,000 on a deal.

However, that deal took 8 months to close, and during that time the student spent his full time effort trying to negotiate 20 other deals – none of them came through.

You can easily see how scrupulous real estate “educators” can frame these types of checks into “success stories”, continuing to impress upon their prospective students that short sale investing is still a valid business model.

Meanwhile, the most successful “short sale gurus” make hundreds of thousands of Dollars each month – not from short sale deals, but from the bogus information they are selling to more and more desperate opportunity seekers who are placing their hopes in it.

Over the past 6 months I have no longer participated in this game of chasing the dream, helping desperate home owners, trying to reason with lenders and engineer “win-win solutions” while reaping a healthy profit.

Why? Because it’s a phony game. The decks are always stacked in favor of the banks, and you can never “win” as much as the banks always do.

So I decided to take on the banks at THEIR OWN game, fight them (instead of trying to please them), and pull away the curtain from their unfair advantage.

Yes, I have removed the loans from two of my investment properties, and am now in the process of re-enforcing my rights against the common FRAUD that banks are committing each time they make a so called loan.

I will be posting more information about my journey against the lenders in much more detail. Meanwhile, please share your own experiences in the comments below. What is your story with your lender?

I’d like to share with you some important information about
commercial foreclosure investing.

I know this may sound different from what you typically hear
but its true…

Contrary to what conventional wisdom might tell you,
commercial foreclosure investing is not hard if you know
what you’re doing.

For example, you know those expert insiders you see on TV or
read about in the papers or online?

Well, the truth is, anyone can do this.

These experts have simply learned ONE thing you don’t know
yet.

And that is…

How to find SWEET commercial deals.

D.C. Fawcett and Karen Hanover, two of the nation’s leadingshort sale and commercial foreclosure experts, have created
the most hard-hitting video workshop I’ve ever seen, when
it comes to how to make a small fortune investing in
commercial real estate”

This must be one of the biggest and most scandalous eye-openers that unfold in the foreclosure crisis, which is saturated with propaganda about foreclosure rescue scams and banks’ unwillingness to work with short sale investors.

Remember this video the next time you talk to a bank, and click below to discover
how you can strike back: